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HyLion: green hydrogen supply chain from Scotland to Germany

The HyLion early demand project is designed to establish an end-to-end green hydrogen supply chain from Scotland to Germany with potential upscaling to other European countries. The project is led by MHP — a Porsche company.

HyLion has an international network of partners that includes among others Siemens Energy, Bilfinger, Messer Group, Chart Industries, Oerlikon, and McPhy.

Scottish hydrogen production and export demand

Germany is proving to be a suitable offtake country for Scottish hydrogen due to its diverse industries and need to decarbonise.

The focus of the project’s first phase is the transport sector and HyLion has already commitment around one quarter of the offtake.

It's expected that the European Union will need to import approximately 50% of its hydrogen demand in 2030. And over 75% of Germany’s hydrogen demand will have to be imported in 2030. 

Scotland can meet approximately one third of the German demand.

Scotland has an established energy transition industry focused on moving away from oil and gas. It also holds the record for having the first floating offshore wind farm. A significant part of Europe´s wind energy potential lies off Scotland´s coasts.

Hydrogen containers waiting to be exported

HyLion at a glance:

  • Opportunity to be part of an early-mover hydrogen project

  • Offers diverse scaling potential

  • Significant reduction in CO2 emissions compared to other fuels

Project details

In the HyLion project, green hydrogen will be produced in Scotland using wind energy. It will then be made available in liquid form. It will be exported to Germany in liquid form to be used by various offtakers, as well as being used domestically in Scotland. 

Depending on the demand, a regasification could take place in Germany, either centrally or directly at the offtaker site. In the longer term there's the possibility of using a pipeline — a potential partner is already identified within the network.

The HyLion project is characterised by the strong network of partners that bring together technology and knowledge along the supply chain. These partners include, among others, Siemens Energy, Chart Industries, Bilfinger, Oerlikon, Messer Group and McPhy.

Depending on market demand, transport can take place in cryo containers by ship, rail and truck, or in tanks for specialised ships.  At a later stage, the hydrogen can be transported by pipeline when the project has been scaled up.

The project is currently expected to be located in Aberdeen. The city is an attractive location for this early demand project due to its infrastructure and local support. Duisport, in Duisburg, is currently proposed as the initial import location. This is because of its strong hydrogen ambitions and its proximity to many network partners in the North Rhine Westphalia.

The project will start with up to 40 tonnes of green hydrogen per day by 2027. An initial amount of 15 tonnes per day (with potential to increase) will be in liquid form.

The remaining 25 tonnes per day may be used for other derivates such as e-methanol. HyLion is already working on a potential scale-up from 2027 onwards. Once imported, the hydrogen will be taken to the offtakers.

There is currently offtaker commitment for a quarter of the hydrogen produced, for use at hydrogen refuelling stations in Germany and the UK. Additional offtakers could also be located in other parts of Germany or wider Europe.

About the opportunity

HyLion offers you the chance to be part of an early mover hydrogen project, where you'll benefit from the technology and supply chain expertise of all network partners.

The company is looking for investors to create a Special Purpose Vehicle (SPV) company in Scotland. In the short term, HyLion is also looking for initial funding to cover the project development and engineering design costs until a Final Investment Decision is reached.

The project is also looking for debt funding as well as other equity investors and partners to further shape the project.

The long-term role of MHP – a Porsche company – will include:

  • Continuation and detailing of concept development and business case (in close co-ordination with the industrial partners in the network and, if applicable, the investors)
  • Identification and integration of further committed offtakers, technology and logistics partners and investors
  • Further development of the global of hydrogen community from the north east of Scotland 
  • Project management and coordination network advisory role
  • Shaping development of transport scenarios which contribute to the decarbonisation of supply chains
  • Integration of further business models (such as scaling)

Alignment to the United Nation’s Sustainable Development Goals

The Green Investment Portfolio support the UN’s Sustainable Development Goals.  The projects in the portfolio support the goals below:

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Whereas every effort has been made to ensure that the information in these pages is accurate, Scottish Enterprise and Scottish Development International does not accept any liability for errors, omissions or misleading statements. And no warranty is given, or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Investors will need to undertake their own due diligence in conjunction with individual project promoters/sponsors in relation to the detailed project investment opportunities presented.